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REGISTERED NUMBER: 02627422 (England and Wales)









ELECTRACENTRE DISTRIBUTION LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023






ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


ELECTRACENTRE DISTRIBUTION LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2023







DIRECTORS: L J Hassell
M C Bell





REGISTERED OFFICE: Awebb House 2 Kensington Works
Hallam Fields Road
Ilkeston
Derbyshire
DE7 4BR





REGISTERED NUMBER: 02627422 (England and Wales)





AUDITORS: Mark Holt & Co Limited
Chartered Accountants
Statutory Auditors
7 Sandy Court
Ashleigh Way
Langage Business Park
Plymouth
Devon
PL7 5JX

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

BALANCE SHEET
31 MAY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 5 19,287 41,124
Tangible assets 6 238,450 243,108
257,737 284,232

CURRENT ASSETS
Stocks 1,038,501 1,112,326
Debtors 7 2,260,164 2,113,575
Cash at bank 754,011 1,124,121
4,052,676 4,350,022
CREDITORS
Amounts falling due within one year 8 1,366,422 2,000,341
NET CURRENT ASSETS 2,686,254 2,349,681
TOTAL ASSETS LESS CURRENT LIABILITIES 2,943,991 2,633,913

CAPITAL AND RESERVES
Called up share capital 89 90
Revaluation reserve 61,346 61,346
Retained earnings 2,882,556 2,572,477
2,943,991 2,633,913

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 16 February 2024 and were signed on its behalf by:





L J Hassell - Director


ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1. STATUTORY INFORMATION

Electracentre Distribution Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention with the exception of land & buildings within tangible fixed assets, which have been revalued to their current market value.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of property
The company carries it's land and building at fair value, with changes in fair value being recognised in comprehensive income. The professional valuer used a valuation technique which took account of the market rent of the property. The freehold land and buildings valuation is most sensitive to the estimated yield.

Directors have valued freehold land and building on an open market basis as at the year end.

Accrued rebate income and impact on stock
In line with general industry practice, at times the company receives rebates from some suppliers in relation to purchases made. At any one time there is stock held on which rebates have or are due to be received, which would reduce the actual unit cost of this stock below the initial amount invoiced. To reflect the impact of these rebates on the stock value, and properly record stock at the lower of cost and net realisable value, an adjustment should be made to lower the value of stock reported. The directors have estimated the impact of the purchase rebates on stock by looking at ratios of rebates, purchases and stock and consider the impact to be immaterial. It has therefore not been adjusted for.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

3. ACCOUNTING POLICIES - continued

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for electrical wholesale goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.

The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software 25% on reducing balance

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Buildings freehold Straight line over 100 years
Plant & machinery25% on reducing balance
Fixtures, fittings & equipment25% on reducing balance

Land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Properties are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is considered to be their open market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses an impairment loss previously recognised in profit or loss or an impairment loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in the profit and loss account.

Impairment of Assets
This policy is not relevant for property assets held at valuation, which have been discussed above.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in revaluation reserve before being recognised in the profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company


ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

3. ACCOUNTING POLICIES - continued
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Provisions for liabilities
Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance costs in profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period, and which employees are entitled to carry forward and use within the next 12 months, measured at the salary costs payable for the period of absence.

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

3. ACCOUNTING POLICIES - continued

Grant income
Income received in relation to grants are classified either as relating to revenue or to assets.

Grants relating to revenue are recognised in other income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Where a timing difference arises, the income is held on the balance sheet. When received in arrears the expected income is recognises as a debtor so long as the relevant conditions have been satisfied. When received in advance of costs, the income is held as deferred income and systematically released to the profit and loss in the periods the cost is incurred.

Grants relating to assets are recognised initially as deferred income and released to other income on a systematic basis over the expected useful life of the asset.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2022 - 11 ) .

5. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 June 2022 41,124
Additions 545
Grants (15,953 )
At 31 May 2023 25,716
AMORTISATION
Amortisation for year 6,429
At 31 May 2023 6,429
NET BOOK VALUE
At 31 May 2023 19,287
At 31 May 2022 41,124

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

6. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
COST OR VALUATION
At 1 June 2022 245,000 24,299 6,272 275,571
Additions - - 2,725 2,725
At 31 May 2023 245,000 24,299 8,997 278,296
DEPRECIATION
At 1 June 2022 20,250 8,050 4,163 32,463
Charge for year 2,450 4,053 880 7,383
At 31 May 2023 22,700 12,103 5,043 39,846
NET BOOK VALUE
At 31 May 2023 222,300 12,196 3,954 238,450
At 31 May 2022 224,750 16,249 2,109 243,108

Cost or valuation at 31 May 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
Valuation in 2014 45,659 - - 45,659
Valuation in 2020 20,000 - - 20,000
Cost 179,341 24,299 8,997 212,637
245,000 24,299 8,997 278,296

The revaluations relate to the land & buildings within freehold property held in tangible fixed assets. The directors have valued freehold land and buildings on an open market basis as at the year end using the same basis used by BB&J Commercial Property Consultants during the valuation on 12 November 2019.

The aforementioned land & buildings are held jointly with Association of Wholesale Electrical Bulk Buyers Limited, and the valuation is split 50/50 between the two companies.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,457,336 1,352,183
Other debtors 802,828 761,392
2,260,164 2,113,575

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,097,804 1,121,278
Amounts owed to group undertakings 150,001 650,000
Taxation and social security 83,000 125,089
Other creditors 35,617 103,974
1,366,422 2,000,341

ELECTRACENTRE DISTRIBUTION LIMITED (REGISTERED NUMBER: 02627422)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs Stephanie Williams (Senior Statutory Auditor)
for and on behalf of Mark Holt & Co Limited

10. RELATED PARTY DISCLOSURES

The company has an unlimited cross guarantee on all bank borrowing within the Association of Wholesale Electrical Bulk Buyers Limited. The bank borrowings of Association of Wholesale Electrical Bulk Buyers Limited at the balance sheet date amounted to £nil (2022, £nil.)

During the year, a management fee was paid to Association of Wholesale Electrical Bulk Buyers Limited from the company totalling £100,000 (2022, £100,000.) The balance as at 31 May 2023 was £150,000 due to Association of Wholesale Electrical Bulk Buyers Limited.

Key Management Personnel Compensation

Exemption under FRS 102 Section 1A, Paragraph 33.7 has been taken in relation to the disclosure of Key Management Personnel Compensation

11. POST BALANCE SHEET EVENTS

Subsequent to the balance sheet date, the directors have undertaken a detailed review of the corporate governance structure of the company. This process was agreed by the members at the 2023 AGM. New Articles of Association have been drafted and approved by the board. These will be presented to the members for formal adoption at the 2024 AGM.

The revised articles replace those that were drafted in 1992. The directors agreed that the original Articles were out of date and did not represent current best practice. More importantly, they did not reflect the actual way that the company is governed and had been governed for many years. The new Articles will be in line with the historic corporate governance structure.

In previous accounts, Electracentre Distribution Limited has been disclosed as a subsidiary of Association of Wholesale Electrical Bulk Buyers Limited. The historic corporate governance structure was not reflected by the 1992 Articles. Association of Wholesale Electrical Bulk Buyers Limited should not have, and has never actually, exercised shareholder control of Electracentre Distribution Limited. The directors and members have agreed that Association of Wholesale Electrical Bulk Buyers Limited and Electracentre Distribution Limited are in fact companies under common control and are not parent company and subsidiary.

12. ULTIMATE CONTROLLING PARTY

The company is controlled by its members. There is no ultimate controlling party. Subsequent to the year end the company has adopted new Articles of Association that reflect that the company is, and has always been, controlled by its members.

13. MOVEMENTS IN SHARE CAPITAL

Movements in share capital relate to the issuing and cancellation of shares for members of Association Of Wholesale Electrical Bulk Buyers Limited.